REG - Nanoco Group PLC - Conclusion of CDX process & Directorate changes

NanocoAnnouncement

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RNS Number : 2933Q  Nanoco Group PLC  26 January 2026

FOR IMMEDIATE
RELEASE
         26 January 2026

 

THIS ANNOUNCEMENT CONTAINS INSIDE INFORMATION FOR THE PURPOSES OF ARTICLE 7 OF
THE MARKET ABUSE REGULATION (596/2014/EU) AS THE SAME HAS BEEN RETAINED IN UK
LAW AS AMENDED BY THE MARKET ABUSE (AMENDMENT) (EU EXIT) REGULATIONS (SI
2019/310) ("UK MAR").

Nanoco Group PLC

("Nanoco", the "Group", or the "Company")

 

Conclusion of CDX process

 

Directorate changes

 

Nanoco Group plc (LSE: NANO), a world leader in the development and
manufacture of cadmium-free quantum dots and other specific nanomaterials
emanating from its technology platform, announces that, following an extensive
exercise in relation to a potential sale of the Group's trading business as
outlined in previous announcements (the "CDX Process"), the Board is no longer
actively seeking a buyer. Instead, the Group intends to deliver comparable or
superior value by carefully investing its resources in existing high-potential
business areas, while minimising the Group's operating costs.

The CDX Process has been comprehensive and led to discussions progressing to
an advanced stage with several counterparties, but not to firm offers. The
process reiterated to the Board the critical importance of not just potential
financial value as compared with the Group's current standalone prospects but
also process complexity and execution risk (particularly, in certain cases,
considerations around national security investment legislation).

During the same period, the Group made operational progress, including the
commencement of a Joint Development Agreement ("JDA") with a second Asian
chemical customer, and also the three-year extension of its JDA with its first
Asian chemical customer.

In addition, having achieved a successful result in its litigation with LG
Electronics Inc. in November 2025, the proceeds of which have now been
received, the Group has now commenced proceedings against Shoei Chemical Inc.
and Shoei Electronic Materials, Inc for the infringement of Nanoco's
intellectual property and is expecting the case to come to trial within the
calendar year 2026.

Having taken all of the above into consideration, the Board has concluded that
the CDX Process is now unlikely to deliver a compelling transaction when the
Group could instead deliver comparable or superior value by carefully
investing its resources in existing high-potential business areas, while
taking measures to reduce the Company's gross monthly cash operating costs to
between £300,000 - £400,000.

In connection with this cost reduction programme and following the conclusion
of the CDX process, Dmitry Shashkov, CEO, will leave the Group in February
2026 after a short handover period. Jalal Bagherli, currently Non-Executive
Chairman, will become Executive Chairman. Liam Gray, currently Chief Financial
Officer, will take up the role of Interim CEO. Liam has been with the Group
for seven years and has a strong understanding of Nanoco's capabilities,
operations and financial requirements.

The Non-Executive Board will be reduced in size to reduce cost, while still
maintaining the appropriate balance of independent directors. Therefore, in
addition to Dr Alison Fielding's previously announced retirement from the
Board, Dieter May will also step down from the Board. Both Alison and Dieter
will leave in April 2026.

The Board will continue to explore all options to both maximise shareholder
value and preserve the Company's cash balance, and will update shareholders as
appropriate.

Jalal Bagherli, Executive Chairman of Nanoco, said:

"We have undertaken a comprehensive process to assess our options for a
potential sale of the Group's trading business. As we have been clear
throughout, the Board's priority has been to secure a transaction that is
executable and reflects the inherent value within the trading business versus
its standalone prospects. We have also, in our assessment, been cognisant of
the risks posed to Nanoco's standalone prospects by the Group's lack of scale
and the inherent risk in litigation.

"As it currently stands, we believe that the process is now unlikely to
deliver a compelling transaction when the Group could instead deliver
comparable or superior value by carefully investing its resources in existing
high-potential business areas.

"I would like to thank Dmitry for his tireless efforts during the process,
working on development and implementation of Nanoco's organic growth strategy,
in parallel with both the CDX process and LG Electronics litigation.

"I am grateful to Liam for agreeing to step into the Interim CEO role in
addition to his CFO duties. Liam has been an invaluable part of the Nanoco
executive team for a number of years, and I have full faith in his
capabilities. He has a thorough understanding of the Company's operations and
cost base, and has delivered significant reductions in the Group's costs to
preserve shareholder value in the past.

"Equally, I would like to thank Dr Alison Fielding and Dieter May for their
contributions to the Board over the last eight and two years
respectively."

- Ends -

MAR

The information contained within this announcement is considered by the
Company to contain inside information for the purposes of UK MAR. Upon the
publication of this announcement via a Regulatory Information Service, this
inside information will be considered to be in the public domain.

The person responsible for arranging for the release of this announcement on
behalf of Nanoco is Liam Gray, Chief Financial Officer.

Nanoco Group plc:

Dmitry Shashkov,
CEO
      +44 (0)1928 761 404

Liam Gray, CFO & Company Secretary

 

Sodali & Co (Public
Relations)

Elly
Williamson
      +44 (0)79 3535 1934

Pete Lambie

Oliver Banks

Nanoco@sodali.com (mailto:Nanoco@sodali.com)

 

Cavendish Capital Markets Limited (Financial Adviser and Corporate Broker):

Ed Frisby / George Lawson (Corporate Finance)
 
                          +44 (0) 20 7220 0500

Tim Redfern (Corporate Broking)

Jasper Berry (Sales)

 

Notes for editors:

About Nanoco Group plc

Nanoco (LSE: NANO) is a world leader in the development and manufacture of
cadmium-free quantum dots and other specific nanomaterials emanating from its
technology platform. In particular, Nanoco is a nanomaterial production and
licensing group, specialising in the production of its patented cadmium free
quantum dots (CFQD® materials) and other patented nanomaterials for use in
the electronics industries. Founded in 2001 and headquartered in Runcorn, UK,
Nanoco continues to build out a world-class, patent-protected IP portfolio
alongside its existing scaled up production facilities for commercial orders.

Nanomaterials are materials with dimensions typically in the range 1 - 100 nm.
Nanomaterials have a range of useful properties, including optical and
electronic. Quantum dots are a subclass of nanomaterial that have
size-dependent optical and electronic properties. Within the sphere of quantum
dots, the Group exploits different characteristics of the quantum dots to
target different performance criteria that are attractive to specific markets
or end-user applications such as the Sensor, Electronics and Display markets.
Nanoco's CFQD® quantum dots are free of cadmium and other toxic heavy metals,
and can be tuned to emit light at different wavelengths across the visible and
infrared spectrum, rendering them useful for a wide range of display
applications. Nanoco's HEATWAVE® quantum dots can be tuned to absorb light at
different wavelengths across the near-infrared spectra, rendering them useful
for applications including cameras and image sensors.

Nanoco is listed on the Main Market of the London Stock Exchange, holds the
LSE's Green Economy Mark, and trades under the ticker symbol NANO. For further
information please visit: www.nanocotechnologies.com
(http://www.nanocotechnologies.com)

 

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